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How Dividends Change the Game for Disney

Anders Bylund
February 6, 2013

The wealth-building power of compound interest will never cease to amaze me. It's a story of patience and attention to detail, where small differences in the short term add up to massive divergence over decades. In the end, the biggest winners don't always deliver the fattest share-price returns.

Take entertainment giant Walt Disney (NYSE: DIS), for example. The longtime Dow Jones Industrial Average (DJINDICES: ^DJI) component has absolutely crushed its Dow peers over the last decade, any way you slice it. But if you're not reinvesting your Disney dividends in more stock, you're leaving a significant pile of money on the table.

DIS Chart

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